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A tale of pork prices : evasion and attenuation of a Japanese tariff

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  • Kazuki Onji

    (Australia-Japan Research Centre)

Abstract

This paper empirically examines the effectiveness of a safeguard tariff in the Japanese market for imported pork parts. The goals are, first, to consider a refinement to the traditional market-based method for evasion detection, and, second, to apply the method in a setting where evasion is suspected to be widespread. Utilising a within-pig variation in tariff burdens and the timing of safeguard invocations, I examine a panel of monthly wholesale prices on narrowly-defined pork products from 2001 through 2008. The results are consistent with a hypothesis that a widespread evasion nullified the safeguard tariff on pork, and are robust to a range of alternative explanations including the adjustment of profit margins by traders. Safeguard tariffs appear to be a simple mechanism, but behavioural responses can undo the policy intent.

Suggested Citation

  • Kazuki Onji, 2009. "A tale of pork prices : evasion and attenuation of a Japanese tariff," Trade Working Papers 22883, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:22883
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    File URL: http://www.eaber.org/node/22883
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    References listed on IDEAS

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    Cited by:

    1. Derstappen, Rebecca & Christoph-Schulz, Inken & Banse, Martin, 2022. "An empirical analysis of the export potential of pork produced under higher animal welfare standards," Thünen Working Paper 319352, Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.
    2. Derstappen, Rebecca & Christoph-Schulz, Inken Birte & Banse, Martin, 2021. "An empirical analysis of the export potential of pork produced under higher animal welfare standards," Thünen Working Papers 184, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.

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    More about this item

    Keywords

    safeguard tariff; price disparity; tax incidence;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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